As the security and variety of available payment instruments increases, consumers have grown more and more accustomed to making purchases with transaction accounts via associated payment instruments in place of cash. Payment instruments offer greater convenience and security than cash does, as there is often only a single card or device that need be carried, and if the payment instrument is lost or stolen the consumer may be able to recover the instrument or receive a replacement without losing their money. As such, many consumers often prefer the use of payment instruments in place of cash.
However, there are instances where payment instruments may be less convenient than cash. For example, a person-to-person transfer of funds may be difficult, and in some instances impossible, to perform using traditional payment instruments. In addition, traditional payment instruments often require a working connection between the merchant or individual receiving a payment instrument and a payment network or financial institution associated therewith for processing the transaction. Furthermore, payment via a payment instrument may not be guaranteed for a merchant, as the funds may never end up being transferred to the merchant due to intermediate actions taken by the consumer. As such, there are instances where the use of cash may be beneficial over a payment instrument associated with a transaction account.
Thus, there is a need for an improved technological system where a payment instrument may be suitable for use in making guaranteed payments, person-to-person payments, and payments for transactions in instances where a recipient may lack a connection to a payment network or other payment processor. Such technological improvements may increase the utility of payment instruments to accommodate for some of the traditional advantages gained via cash purchases.